Mind the debt portfolio’s risks when investing in hybrid funds

“In case the duration call goes wrong, the risk of loss will be limited to fall in the mark-to-market price of the security. The investor can stay invested and hope for a recovery in the yields (when interest rates fall). But in case the credit call goes wrong, you are staring at a capital loss. The recovery may be really protruded or may never happen," said Santosh Joseph, founder and managing partner, Germinate Wealth Solutions.